New Tourism Projects in Thessaloniki
The groups of Electra Hotels & Resorts and the Israelis of Fattal are currently developing and implementing two of the largest 5-star hotel projects in Thessaloniki, at the same time that the foreign brands of Radisson, Melia, as well as the Israelis of Isrotel, which are new to the Greek market, are in the process of searching.
Εστω κι αν ο δρόμος είναι ακόμη μακρύς, η τουριστική ανάκαμψη της συμπρωτεύουσας, η οποία το 2023 είχε κάτι λιγότερο από 2,4 εκατομμύρια διεθνείς αφίξεις, φέρνει νέα εγχειρήματα στον κλάδο της φιλοξενίας, και μάλιστα στις υψηλότερες κατηγορίες, πέραν φυσικά της βραχυχρόνιας μίσθωσης, η οποία αριθμεί ούτε λίγο ούτε πολύ κάτι παραπάνω από 4.000 καταλύματα, ξεπερνώντας σε κλίνες τα ξενοδοχεία της πόλης. «Το ξενοδοχειακό προϊόν της Θεσσαλονίκης αλλάζει», δηλώνει ο κ. Ηλίας Κικίλιας, γενικός διευθυντής του Ινστιτούτου του Συνδέσμου Ελληνικών Τουριστικών Επιχειρήσεων (ΙΝΣΕΤΕ)
, διαπιστώνοντας ότι την περσινή χρονιά οι διεθνείς αφίξεις στη συμπρωτεύουσα ανήλθαν σε πάνω από 2,36 εκατομμύρια, έχοντας ξεπεράσει -έστω και με μικρή αύξηση κατά 2%- τα προπανδημικά επίπεδα των 2,3 εκατομμυρίων του 2019, που ήταν η επόμενη καλύτερη χρονιά.
Arrivals and Overnight Stays (Thessaloniki)
Based on INSETE data by country of origin, Germany was the first in arrivals at the “Macedonia” airport last year with over 755,000 arrivals, followed by the United Kingdom with 278,000, Cyprus with 227,000, Italy with 181,000 and Austria closing the top 5 with over 110,000 arrivals.
In hotels, in terms of top nationalities, almost half are Greeks. “The percentage of Greeks corresponds to 46% of the total overnight stays last year, followed by Americans and Israelis with a large difference and percentages slightly above 5%,” notes the general manager of INSETE. It is noteworthy that, based on the number of overnight stays, Americans with 142,000 overnight stays emerged as champions in the co-capital last year with a very large increase, by 51%, compared to 2019, coming through the only gate with direct connection to American airports at this time, which is none other than the Athens airport. The increase in visitors from the USA to the co-capital is at this stage a strong argument for the city’s stakeholders who are calling for a direct air connection with the other side of the Atlantic. The share of overnight stays in the city by Israelis is understandably reduced, reaching 126,000 in 2023, -32% compared to 2019, while Germany completes the top 3 followed by Cyprus.
Hotels & Airbnb
According to the INSETE analysis, Thessaloniki as a destination offers an upgraded hotel experience, records an increase in supply (and) in short-term rental accommodation, provides a competitive tourist experience which can be further enriched with emblematic sights in the surrounding areas (Aigai, Dion, Pella etc.). “The product in hotels is changing with an indicative 22% increase in the last five years in terms of beds in the 5-star category”, says Mr. Kikilias. According to INSETE figures, at the end of 2023 there were 21 5-star units in the city with a capacity of 2,475 beds, up from 15 in 2019 with a capacity of 2,034 beds. A smaller increase, of 6%, is recorded in the 4-star category with 2,278 beds compared to 2,159 in 2019, while the three lower categories show a decrease, which reflects the shift in the tourism product that has been taking place in recent years.
In this context, Mr. Kikilias particularly emphasizes the large increase in short-term rental accommodation, “where the number of beds in this category of accommodation corresponded to about 14,000 beds in December 2023, showing an increase of 58% compared to 2019, while the city’s hotels have less than 8,500 beds”. In terms of the number of available short-term rental properties, these corresponded to just over 4,000, an increase of 70% compared to 2019.
The INSETE analysis also shows that “the rating of Thessaloniki hotels is very high compared to other competing cities abroad (Bologna, Smyrna, Marseille, Barcelona), but also Athens, but the performance indicators are lower”: in Athens the occupancy rate was 76% in 2023 compared to 69% in Thessaloniki with a 4% drop compared to 2019, with the average room rate (ADR) in the co-capital corresponding to 96 euros (+25% compared to 2019).
In Athens the corresponding figure is 137 euros (+29% from 2019), as shown by the processing of data from the well-known consulting firm GBR Consulting, which cooperates with the local hotel associations in the two largest urban centers of the country.
Tourism Projects
Regarding new projects, the construction site for the new five-star hotel of Electra Hotels & Resorts has been set up in the heart of the city since last month, further strengthening the group’s presence in the co-capital where it has already had a strong presence for decades. “The hospitality industry in Thessaloniki and Halkidiki remains on the radar of investors, as it presents interesting investment opportunities,” notes the latest analysis on the real estate of the co-capital by the well-known real estate consulting firm Danos, which cooperates with BNP Paribas.
As for the new hotel of the Electra Group, at the junction of Tsimiski, Ethniki Amyns and Dagkli streets, it is estimated that it will be ready in about two years from now, in 2026, with an investment of around 30 million euros. The new project concerns the construction of a 5-star hotel with a capacity of 165 rooms on a property of the Church of Greece which has been leased for this purpose through a relevant tender process and will be the seventh hotel for the group, which currently has a strong presence in the center of Athens, Thessaloniki, Rhodes and Kefalonia.
By the end of the year, the new “NYX Thessaloniki” is also expected to be ready, at the corner of Tsimiski 1 and Katouni streets, by the Israeli Fattal. The investment is estimated at over 22 million euros (including the acquisition cost) for the new hotel of the Israelis, who have been operating the “NYX Esperia Hotel” on Stadiou Street in Athens since last year, with good occupancy rates and having significantly expanded their clientele to American visitors.
On another investment front, the mixed group of investors behind Brown Hotels, with Israeli but also other foreign capital, on the one hand reshaped its plans for the old “Vienna” hotel, which is in its portfolio and will not eventually become a hotel, but will most likely be leased for another use – even educational). On the other hand, the other plan for the utilization of the former tobacco warehouse Sakka – Michailidis is moving forward, which is intended for a 4-star boutique unit in about two years from now, an investment of about 20 million euros.
Similarly, the newcomer to the Greek market from Tel Aviv Isrotel, having already made its debut in Athens within the month through the new Aluma Hotels & Resorts chain, intends to expand to the co-capital, possibly in agreement with the investors behind Brown.
The Danos analysis also refers to the old listed hotel “Tourist”, at the corner of Mitropoleos 21 and Komninon streets, which has been owned by the well-known businessman in the field of electrical and electronic devices, household and professional, Kostas Amouridis (of Amouridis – Savvidis SA) since 2021, with the aim of upgrading and reopening it in the upper category.
According to information, the Germans who have acquired the property where the old “Egypt” hotel used to be are also looking for an investor. For this specific project, a subsidy of 1.2 million euros has been approved and awarded with the aim of creating a small 34-room unit.
The old 53-acre property of the former VIAMY, which was sold in 2020, is also among the future projects of the co-capital towards tourism development, once the uses in the wider area are finalized.
In addition, the large redevelopment project that Dimand will run at the former Fix brewery and at Hub 26, which is located right across the street, will also include hotel use. The project, with a total value of 180 million euros and a completion horizon of 2027, includes the restoration and reuse of listed buildings with a total area of 15,000 sq.m., as well as the construction of two new buildings, with housing, hotel, catering, cultural and sports facilities, shops and office space, but also additional new public spaces, such as pedestrian and bicycle paths. A few days ago, the Ministry of Culture announced that it will proceed with the direct purchase or compulsory expropriation of only one of the buildings, building 2, with an area of approximately 7,500 sq.m., for cultural purposes. According to Dimand officials, this development does not create an issue for the investment and is not contrary to the redevelopment plan that the company has drawn up.
